Eskom: Further steep tariff hikes needed to reach cost-reflectivity

Eskom ultimately wants to link its increases to the consumer price index. Image: Waldo Swiegers, Bloomberg
Even with the 15.63% tariff hike to be implemented on April 1, Eskom considers its electricity tariffs to be far from cost-reflective.
To bring it to cost-reflectivity would have required a tariff jump to 150c/kilowatt hour (kWh) on average, instead of the 134c/kWh applicable from April 1, says Eskom’s general manager Regulations, Hasha Tlhotlhalemaje.
This translates to an increase of 29%.
Eskom hopes to close this gap over the next three years and energy expert Chris Yelland, MD of EE Business Intelligence, expects Eskom to gun for a further 15% increase in the average tariff in 2023.

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